FX.co ★ Australian Shares Extend Gains

The S&P/ASX 200 advanced by 0.4% to approximately 8,573 on Tuesday, continuing its upward trajectory from the previous session. This increase comes amid mounting uncertainty surrounding US interest rate policy and a downturn in Australia's manufacturing sector. Conflicting signals regarding inflation and labor market dynamics are creating ambiguity around the Federal Reserve's timeline for rate cuts and sparking concerns about the broader monetary policy outlook. In Australia, the Manufacturing PMI declined to 50.6 in June from 51.0 in May, marking its lowest level since February. This decrease highlights drops in production and new orders, driven by weakening export demand and persistent supply chain disruptions. Notably, individual stocks such as Xero Limited saw an increase of 2.6%, Newmont Corporation rose by 1.4%, and Block, Inc. reported a gain of 1%. Energy stocks also garnered attention; Santos experienced a 1.3% decline, while Woodside Energy Group inched up 0.4%. These movements occurred as modest oil price upgrades, influenced by tensions in the Middle East, were counterbalanced by elevated OPEC+ supply and tepid demand forecasts.